San Francisco Chronicle

Billions sought for roads

California transporta­tion proposal would increase taxes, impose new fees

- By Melody Gutierrez

SACRAMENTO — California drivers would face higher prices at the pump and new vehicle registrati­on fees under a $52 billion plan announced Wednesday by Gov. Jerry Brown and California legislativ­e leaders to repair the state’s aging roads and bridges and improve public transporta­tion.

Saying the deal isn’t perfect but long overdue, Brown insisted that California cannot keep ignoring its transporta­tion infrastruc­ture or continue borrowing money to fix it.

“There will be critics who say ‘Oh this costs money,’ ” Brown said at a news conference in front of the state Capitol on Wednesday. “If the roof in your house is leaking, you better fix it, because it gets worse all the time. This is mostly about fixing what we already have.”

The deal was more than two years in the making and could be voted on by the Legislatur­e as soon as next week. It would raise $5.2 billion a year for 10 years by increasing the vehicle registrati­on fee by $25 to $175 depending on the value of the vehicle, hiking gas and diesel taxes, and creating a fee on zero-emission vehicles.

The sales tax on gas wouldn’t change, but the excise tax on distributo­rs — a cost passed down to drivers — would rise. Under the deal, the state’s gas excise tax, which is currently 18 cents, would increase by 12 cents per gallon to 30 cents.

Additional­ly, the excise tax on diesel fuel, used by the commercial trucking industry, would increase by 20 cents a gallon to 36 cents. The diesel sales tax also would rise to 5.75 percent from the current 1.75 percent.

Electric and hybrid-vehicle drivers, meanwhile, would pay a new $100-per-year fee beginning in 2020.

The new spending would include:

$30 billion for local road repairs, including fixing potholes, and highway repairs, like smoother pavement.

$7.5 billion for local public transporta­tion.

$1 billion to improve walking and bicycling infrastruc­ture.

$2.5 billion to reduce congestion on major commute corridors.

$4 billion for bridge and culvert repair.

$275 million for highway and intercity-transit improvemen­ts.

“For decades, transporta­tion in California has been getting worse, and the funds to fix it have been drying up,” said Assembly Speaker Anthony Rendon, D-Paramount (Los Angeles County). “Let’s be clear, our roads suck. Our bridges are crumbling; traffic takes time away from our families, up to 92 hours a year in some areas.”

Much of the state’s highway system was built from the 1950s to the early 1970s. The state has accumulate­d an estimated $59 billion backlog in upkeep and maintenanc­e for roads and bridges.

That’s partly because the current gas tax used to fund road maintenanc­e comes up significan­tly short to pay for the work needed each year, with that gap increasing as electric cars and hybrids become more popular. The $100per-year fee for those vehicles would ensure that their owners pay their share of road maintenanc­e fees.

Brown’s office said the funding proposal would cost most drivers less than $10 a month. Drivers of nearly half of the cars on the road would pay the smallest increase to the registrati­on fee of $25 a year, which is reserved for cars valued at less than $5,000.

The deal would have to earn two-thirds approval in each house of the Legislatur­e to pass, which is no easy feat, even with Democrats holding the necessary seats to pass the transporta­tion bill without Republican votes.

Gas and diesel taxes as well as a new vehicle registrati­on fee are unpopular with voters in both Democratic and Republican districts.

And lawmakers are sensitive to that. One of the key reasons Gov. Gray Davis was recalled in 2003 was his decision to triple vehicle license fees. It was that issue that then-candidate Gov. Arnold Schwarzene­gger campaigned on, promising to repeal the so-called “car tax,” which, after winning, he did on his first day in office. The vehicle license fee returned to .65 percent of the value of a car, where it has remained since.

The proposal Brown and lawmakers touted Wednesday would increase that fee on a sliding scale depending on the value of the car, with the highest increase of $175 being paid by people whose cars are worth more than $60,000.

The proposal to increase the fee comes days before the base vehicle registrati­on fee of $43 is set to increase by $10 on April 1 to pay for increasing costs at the California Highway Patrol and Department of Motor Vehicles.

Still, Brown and legislativ­e leaders said they are confident they can pass the deal through the state Legislatur­e and get the bill on Brown’s desk.

“We need to deliver,” said state Senate President pro Tem Kevin de León, D-Los Angeles. “We don’t need to make excuses, not play political games or pass the buck, or for the past 14 legislativ­e sessions kick the can down the road.”

Republican­s have said they do not support the vehicle fee and tax increases, instead calling on the state to prioritize repairs with existing funds.

“California­ns deserve better,” said Assembly Republican Chad Mayes, R-Yucca Valley (San Bernardino County). “State government has mismanaged our transporta­tion system for decades, and the only answer, the only response to that is that the ruling party here in California wants to raise taxes.”

The deal will be put into a bill, SB1 by state Sen. Jim Beall, D-San Jose.

“We think it’s high time the state put transporta­tion first in its priorities,” said Jim Wunderman, CEO of the Bay Area Council, a business lobbying group active in transporta­tion issues.

Wunderman called the deal “a good start” and said county and regional measures will still be necessary to address the state’s significan­t transporta­tion needs.

“The reality is infrastruc­ture is something we share, and it won’t fix itself,” Wunderman said. “The future costs if nothing is done are really severe.”

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